Property Investment And Void Periods
Protect your downside in property investing, just as you would in other asset classes…
> That’s why it’s crucial to mitigate the risk of void periods.
The majority of the risk can be reduced by selecting a strategic location and matching the property to the appropriate strategy. Outsourcing to a capable property management team is also the best option.
> However, it’s critical to examine the underlying supply and demand situation.
>> And across the UK, vacancy periods have reached a FIVE-YEAR LOW.
We’re witnessing sustained high tenant demand, as well as restricted rental availability.
I discovered some recent portfolio landlord data (counted as owning SIX or more properties)…
📉 Wales had the highest rate of recent void periods, with more than one-third of landlords having at least one unoccupied property — at some stage — in the previous quarter.
📉 Central London, on the other hand, is at the opposite end of the spectrum and is lower than the rest of the country. Vacancies were reported by less than a fourth of landlords.
Obviously, voids are an unavoidable feature of investing in property. The goal is to maximize tenancies while minimizing tenant turnover.
And, from the start, allocate a consideration for void periods in your spreadsheet.
